Virgin Super. Member Guide

Transcription

1 Virgin Super Member Guide 1 December 2015 Issued by the Trustee The Trust Company (Superannuation) Limited ABN , AFSL , as trustee for Virgin Super ABN

2 The information in this guide forms part of the Product Disclosure Statement (PDS) for Virgin Super dated 1 December The information in this guide may change from time to time. For any changes that are not materially adverse, we ll notify you of the changes via regular member communications or our website. You can also request a paper copy of any updated information at any time, which will be provided free of charge, by contacting our Customer Care Team on REMINDER: Please check out our website virginmoney.com.au for updated information. References in the PDS and this guide to: Our Customer Care Team is a reference to the Customer Care Team provided by the Administrator. The Customer Care Team is the Administrator s responsibility. Our website is a reference to the website (virginmoney.com.au) provided by the Promoter. The Promoter is responsible for any information accessible through the website (other than Trustee publications like the PDS and this guide), not the Trustee. The parties named in the PDS have given written consent (which has not been withdrawn at the date of this PDS) to being named in the form and context in which they are named, in this PDS. Each party named below who has consented to be named in the PDS: - has not authorised or caused the issue of this PDS; - does not make or purport to make any statement in the PDS (or any statement on which a statement in the PDS is based) other than as specified; and to the maximum extent permitted by law, takes no responsibility for any part of the PDS other than the reference to their name in the statement included in the PDS. The information in this Member Guide is of a general nature only and does not take into account your personal financial situation or needs. You should use the information to consider Virgin Super s suitability in view of your investment objectives, financial situation or needs. You should obtain financial advice from your financial adviser tailored to your personal circumstance before making a decision. For more information about Virgin Super, check out our website virginmoney.com.au or contact our Customer Care Team on between 8am to 6pm AEST/AEDT weekdays (apart from public holidays). 2 Virgin Super

3 A few words from Richard Branson Superannuation might not be the sexiest market that Virgin has ever entered, but it may well be the most important. In true Virgin style, we identified a gap in an industry ripe for disruption, and saw an opportunity to change things for the better. All Australians deserve a bright future which is exactly what Virgin Super aims to deliver. Virgin Super will make your super work harder for you. Find out all the details in this helpful guide. Virgin Super 3

4 The who s who Virgin Super Virgin Money has brought together strong partners to provide you with Virgin Super an attractive and competitive super product. Virgin Money s partners offer: Market leadership and industry innovation Integrity, experience and expertise. The product, Virgin Super, is a regulated and complying super fund. It operates under the Virgin Super Trust Deed. Virgin Money (Promoter) Virgin Money Financial Services Pty Ltd ABN , AFSL Level 8, 126 Phillip Street, Sydney NSW 2000 Virgin Money, the Promoter, is a financial services company that is connected with one of the most well-known brands in the world the Virgin Group. The Virgin Group has successful enterprises in over 29 countries, spanning industries as diverse as finance, travel, telco s and entertainment. Virgin Money aims to give customers simple, great value and transparent financial services products, backed up by our world-famous Virgin customer service. What does Virgin Money do? As the Promoter, Virgin Money will provide general advice and arrange for customers to acquire products issued by Virgin Super s Trustee, both directly (including online at Virgin Money s website virginmoney.com.au and indirectly, through its agents). Virgin Money provides these services under its own Australian Financial Services Licence (AFSL) and not as the Trustee s representative. The Trustee doesn t accept responsibility for any information provided on Virgin Money s website or the advice and arranging services provided by Virgin Money under its own AFSL. Virgin Money and its related entities don t guarantee the capital invested by members, the performance of the specific investments available or Virgin Super generally. Trustee The Trust Company (Superannuation) Limited ABN , AFSL Level 20, 357 Collins Street, Melbourne VIC 3000 The Trustee is the trustee of Virgin Super and the issuer of the PDS and this guide. The Trustee is one of Australia s largest specialist trustees. Neither the Trustee nor any of its related entities guarantee the capital invested by members, the performance of the specific investments available or Virgin Super generally. 4 Virgin Super

5 Custodian BNP Paribas Securities Services ABN Level 6, BNP Paribas Centre, 60 Castlereagh Street, Sydney NSW 2000 Administrator Mercer Outsourcing (Australia) Pty Ltd ABN , AFSL GPO Box 4650, Melbourne, VIC 3001 Mercer is the world s #1 global super administrator 5 years running. Mercer has provided superannuation-related services to Australians for over 40 years. For the fifth year in a row in 2015, Mercer was named the World s Best Provider of Pension Plan Administration Services by Global Finance magazine; the global award is another indicator for Australian superannuation funds that they are set to benefit from ongoing global and local innovation in customer administration services, says the world class provider. Mercer provides administration services for Virgin Super, which includes the provision of our Customer Care Team. Fund Manager Macquarie Investment Management Limited ABN The Trustee invests benefits and contributions to Virgin Super in underlying funds managed by Macquarie Investment Management Limited (Macquarie). Macquarie is a responsible entity for Macquarie Investment Management s business activities in Australia. Macquarie Investment Management offers securities investment management expertise across a range of asset classes including fixed interest, listed equities (domestic and international) and infrastructure securities. It delivers a full-service offering to both institutional and retail clients in Australia and the US, with selective offerings in other regions. Macquarie Investment Management is a part of Macquarie Group. The Trustee has unfettered discretion to determine which fund manager(s) and investment products are used in Virgin Super s investment options. The Manager of the underlying funds may change without prior notification to members. Insurer OnePath Life Limited ABN , AFSL The Insurer is one of Australia s leading life insurers. The Insurer provides access to insurance benefits for Virgin Super s members. Virgin Super 5

6 What s Inside? Section 1: How super works 7 Section 2: Benefits and features of Virgin Super 16 Section 3: Privacy statement 18 Section 4: Risks 20 Section 5: How we invest your money 24 Section 6: Fees and costs 34 Section 7: Tax stuff 40 Section 8: Other information 43 Section 9: Jargon Buster 46 6 Virgin Super

7 Section 1 How super works Topics covered in this section include: contributing to your super about rollovers and transfers withdrawals. Contributing to your super What, who and how to make contributions? The what, who and how is described below but contributions rules also apply. These may affect Virgin Super s ability to accept contributions for you or on your behalf, as well as the tax you pay. Check out Tax Stuff in Section 7 of this guide for more information about tax and contribution limits. What We accept the following contributions either on a one-off or regular basis: Employer contributions (one-off or regular) The mandated minimum Super Guarantee (SG) that an employer must pay Personal voluntary (one-off or regular) You choose to make additional payments Who Paid in by? Your employer on your behalf From your post-tax salary or other sources (personal contributions may be deductible for self-employed, or other eligible persons) How Payment method SuperStream^ compliant methods (eg. Clearing house or payroll solution) BPAY Salary sacrifice An arrangement where a portion of your pre taxed salary is paid directly into Virgin Super. This can have tax advantages for some *. Your employer, with your consent from your pre-tax salary SuperStream compliant methods (eg. Clearing house or payroll solution) Spouse (one-off or regular) Your spouse may make contributions on your behalf Rollovers and transfers Moving of monies from one super fund to another Your spouse (including a de facto spouse of the same or opposite sex) Your other super fund (they need to receive an instruction from you, but we can help out so that it s easy!) BPAY SuperStream compliant methods Virgin Super 7

8 What We accept the following contributions either on a one-off or regular basis: Super Guarantee credits Credits that represent super contributions owed to you from a previous employer Co-contributions If you make personal voluntary (after tax) contributions and are eligible, the Government will also make a super co-contribution up to certain limits Who Paid in by? Via the Australian Tax Office (ATO) Government How Payment method We can receive these on your behalf at any time by Government process We can receive these on your behalf after you have submitted your tax return and we have reported your contributions to the ATO ^ SuperStream is the government mandated way for employers to make contributions to superfunds which came into effect 1 July * The tax advantages will depend on your personal circumstances so we recommend you obtain professional advice. Salary sacrifice contributions will count as income when assessing eligibility for Government co-contributions, spouse contribution rebates, tax deductible member contributions or welfare benefits. Rollovers and transfers don t count as contributions under superannuation legislation however we ve shown them here to illustrate the many different ways you can grow your Virgin Super account. Registered to BPAY Pty Ltd ABN You may also be able to pay other amounts into your super, for example: certain disablement amounts on settlement of a disability claim (outside of super); proceeds from the sale of a small business; and super sourced from a foreign super fund. If you re going to receive any of these amounts or are considering payment of them into your super, we recommend you obtain appropriate advice. For Employers Virgin Super does not accept cheque contributions. If Virgin Super is your nominated default fund for SG contributions, you may use the Virgin Super provided clearing house solution or an alternate SuperStream compliant solution such as a Clearing House/Payroll solution of your choice. If you are remitting contributions on behalf of an employee that has exercised choice of fund, you can use the Small Business Superannuation Clearing House (if your business has 19 or fewer employees or an aggregated turnover below $2 million) or any other SuperStream compliant solution such as a Clearing House/Payroll solution of your choice. 8 Virgin Super

9 What are the contribution rules? There are rules set out by the Government relating to the acceptance of contributions by super funds really they just say who can and can t make a contribution. We can t accept: Member contributions from you if we don t hold your Tax File Number (TFN); or A non-concessional (after tax) contribution made for or on your behalf that exceeds your non concessional contributions limit, based on your age on 1 July in the year in which the contribution is made. Contributions made to Virgin Super that conflict with the contribution rules may be rejected or refunded by the Trustee. A refund of contributions after allocation to a member s account may be adjusted for any investment fluctuations, reasonable costs and insurance premiums for cover provided prior to the refund (if permitted under Virgin Super s governing rules). If a refund is not possible, the amount may be transferred to an Eligible Rollover Fund (refer to page 14 for more information). If you would like further information about the Trustee s policy relating to refunds of contributions where a TFN is not held for a member, contact our Customer Care Team on for more information. Employer contributions and personal voluntary contributions by eligible self-employed (or substantially self-employed) persons may be tax deductible provided the criteria for deductibility is met. For personal super contributions made by self-employed (or substantially self-employed) persons, this includes the need for a valid notice of a self-employed person s intention to claim a tax deduction (Deduction Notice) to be submitted to Virgin Super. Go to for more information about claiming a tax deduction for personal super contributions. For more information about the taxation treatment of contributions, including contribution limits for taxation purposes, see Tax Stuff in Section 7 of this guide. Where s my other super? Can t remember where all of your super is? Track it down using the online SuperSeeker tool at ato.gov.au or call them on Virgin Super 9

10 Government Contribution Incentives Take advantage of Government incentives to contribute to super the Government Co-Contribution Scheme and the Low Income Super Contributions. Government co-contributions To be eligible for the Government co-contribution you must satisfy all of the following requirements: you must earn 10% or more of your total income from carrying on a business, eligible employment, or both; your total income (conditions apply) must be under the co-contributions upper threshold. Please see for up-to-date information on the co-contribution threshold that applies; you must not be a temporary visa holder at any time during the income year in which the contribution is made (exceptions apply for New Zealand citizens in Australia and certain other prescribed visa holders); you must be under 71 years of age at the end of that income year; and you must lodge a tax return. If you make a personal after-tax contribution and your total income (conditions apply) is under the co contributions lower threshold ($34,454 in 2015/16), the Government may contribute $0.50 for each dollar you contribute up to $500 p.a. The maximum contribution payable reduces for every dollar your total income exceeds the lower co-contributions threshold, until your total income reaches $50,454 (2015/16). For full information regarding eligibility and to use the ATO Government co contribution calculator go to ato.gov.au. Salary sacrifice contributions and deductible member contributions don t count. However, if you re self-employed and under the age of 71, you may be eligible for the co-contribution if you make non deductible (after-tax) personal contributions, 10% or more of your total income is from employment and/or business activities and you meet the Government s other eligibility criteria. If you d like further information, we recommend you seek professional advice. All thresholds are correct at time of publication, however are subject to change in future years. Go to for up-to-date information including eligibility criteria, income thresholds and Government contribution incentive amounts applicable from year to year. Low income super contributions To qualify for a low income superannuation contribution: you or your employer must make concessional contributions to the Fund; your adjusted taxable income must be $37,000 or less; you must earn 10% or more of your total income from eligible activities, including being an employee, running a business or both; and you must not hold a temporary resident visa at any stage during the year (unless you re a New Zealand resident). If you qualify, the low income superannuation contribution is 15% of the total of your concessional contributions for the year up to a maximum of $500. Note: the government has proposed to repeal the Low income superannuation contributions with effect from 1 July This had not yet passed as law on the date this document was prepared. 10 Virgin Super

11 Important behind-the-scenes information Every time your employer makes a contribution for you, we re required to deduct contributions tax from that contribution (currently at the rate of 15%). This tax is transferred and held in a special account (the Tax Provision Account ) until the monthly payment is made to the ATO. While this money is in the Tax Provision Account, it earns interest. This interest will be put to good use to help pay for administration and management expenses of Virgin Super, such as system upgrades. This means we don t have to pass all of these costs onto you. About rollovers and transfers You can move monies from one super fund to another. For example, you can transfer any super (including lost super) you have in another super fund that you have previously participated in, into Virgin Super. Usually, a transfer request must be actioned within 30 days after all relevant information has been provided to your previous super fund. This is sometimes referred to as portability of super. More information about portability is provided on page 12 under Withdrawals. There are some great reasons to keep your super in one place, instead of having lots of super funds with small amounts of money in them: it may save you fees it reduces the risk of you becoming a lost member (see page 15 for more information) you can keep track of it all! If you ve got super in loads of places, you can also track down lost super using the online SuperSeeker tool at or call them on For more information about the use of TFNs please see Section 7 Tax Stuff. Check with your other super fund(s) what fees you ll incur, benefits you may lose (for example, insurance) or other consequences of moving your old super to Virgin Super (we can t advise you about this). If your rollover comes from an untaxed source (for example, some public sector schemes) you may incur tax (deductible from the rollover amount). You can complete an online rollover request at (sign in using your personal log-in) or we can help you roll in your super over the phone. We will contact the other super fund(s) for you. Call the Customer Care team if you need any help. If your transfer is from an overseas fund, refer to Section 2 of this guide for further information. Virgin Super 11

12 Withdrawals Topics covered in this section include: what benefit are you entitled to? when can you access your benefit? what happens to your super when you die? what is portability? What benefit are you entitled to? Your benefit in Virgin Super is equal to the amount of any contributions or other amounts paid into Virgin Super by you or on your behalf after taking into account the investment performance applicable to your investment option and any fees, costs and taxes. If you re covered by insurance, an additional insurance benefit may also be payable to you in certain circumstances (for example, Total and Permanent Disablement). For information on how investment performance affects your benefits, check out the information about unit pricing in Section 5 of this guide. When can you access your benefit? Your ability to access your benefits from Virgin Super is subject to the Trust Deed and super legislation. Superannuation law prevents you from accessing your super until you retire from the workforce and have reached a certain age (your preservation age ). Your preservation age will vary between 55 and 60 years depending on when you were born: Date of Birth Preservation Age Before 1 July years 1 July 1960 to 30 June years 1 July 1961 to 30 June years 1 July 1962 to 30 June years 1 July 1963 to 30 June years After 30 June years If you are an Australian citizen, New Zealand citizen or permanent resident, your retirement savings can only be accessed under other Government prescribed conditions (called conditions of release) including: you leave employment with a participating employer of Virgin Super and your benefit is less than $200; you leave gainful employment on or after age 60; upon your death; you suffer a terminal medical condition; you become permanently incapacitated; you experience severe financial hardship and meet certain requirements (subject to further cashing restrictions); you have compassionate grounds for needing the money, as approved by the Department of Human Services (subject to further cashing restrictions); attaining age 65; 12 Virgin Super

13 reaching preservation age and permanently retiring from the workforce; you were previously classified as a lost member who is found, and the value of your benefit in the fund, when released, is less than $200; or where the law otherwise permits (for example, to satisfy an ATO Release Authority). Temporary residents can access super savings in some (but not all) of these circumstances or if they permanently depart Australia and their visa has expired or been cancelled in the form of a Departing Australia Superannuation Payment (DASP). New Zealand citizens will not be eligible for a DASP, even if they are the holder of an eligible temporary resident visa. This is because New Zealand citizens may still have retiring rights in Australia regardless of whether they exercise that right. For more information about when temporary residents can access super, go to If you have transferred or rolled over super into Virgin Super, your benefits may include non-preserved amounts (if sourced from pre 1 July 1999 benefits transferred into Virgin Super). From 1 July 1999, all super contributions (including member contributions) and earnings are preserved. Any component of your benefit that was non-preserved at 1 July 1999 will continue to be non-preserved and can be taken in cash at any time if a condition of release has been satisfied in relation to that amount. Any partial payment of super benefits from Virgin Super must be withdrawn from the exempt (tax free) and taxable components in proportion (see Section 7 of this guide for more information about these components). Marriage breakdown If your marriage breaks down, your super may be able to be split under Family Law legislation. Under recent Government reforms, splitting of super under the Family Law Act has been extended to the breakdown of de facto relationships (including same sex relationships). For further details, please contact your legal adviser. What happens to your super if you die? Your benefit entitlement on death (Death Benefit monies) will consist of: your super benefit; plus the proceeds of any insurance claim admitted by the Insurer. You ve got three options for nominating who you d like to receive your Death Benefit if you die (i.e. while you re a Virgin Super member). Refer to Section 8 of this guide for more information on the options. Proof of Identity The Government enacted legislation to counteract money laundering and terrorism financing (AML/CTF legislation). You may be required to provide proof of identity prior to being able to access your benefits in cash (lump sum or pension payments) or purchase a super pension (called customer identification and verification requirements). These requirements may also be applied by the Trustee from time to time in relation to the administration of your super benefits as required or considered appropriate under the AML/CTF legislation. You will be notified of any requirements when applicable. If you do not comply with these requirements there may be consequences for you, for example, a delay in the payment of your benefits. As a result of the AML/CTF legislation the Trustee has become the subject of another regulatory body, called the Australian Transaction Reports and Analysis Centre (AUSTRAC). The Trustee is required to provide yearly compliance reports to AUSTRAC and notify AUSTRAC of suspicious transactions. This may involve the provision of personal information about you to AUSTRAC. Note: confirmation of your identity may also be required when transferring super benefits between super funds. Failure to provide necessary information may result in a delay in the transfer of benefits. Virgin Super 13

14 What is portability? Under the Government s portability rules, you can transfer some or all of your benefits to an alternative super fund at any time. Upon receipt of all necessary information, super funds will have a maximum of 30 days to transfer benefits except that a longer period may apply in the case of illiquid investments. We may require additional information if you request to transfer benefits to a self-managed super fund. Eligible Rollover Fund Trustees of super funds have a broad power under super legislation to transfer super accounts to the ATO, or to an Eligible Rollover Fund (ERF) which is a special super product for lost super and other amounts. Subject to any requirement to pay unclaimed super benefits to the ATO, if we lose contact with you and your balance is less than $2,000 (and you become a lost member) OR your account balance falls below the minimum permitted account balance ($1,000), your benefits may be transferred to an ERF. The Trustee may also transfer No TFN Tax refund amounts recovered from the ATO (for a member or former member) or refunds of contributions under Government contribution rules to an ERF if after reasonable endeavours the refund cannot be made. If it s simply a matter of topping up your account, we ll invite you to do this before we transfer your benefit. When your benefit transfers to the ERF, you won t be a member of Virgin Super and any insurance benefits will cease. The ERF used by Virgin Super is Super Money Eligible Rollover Fund (SMERF), whose contact details are: Super Money Eligible Rollover Fund (SMERF) PO Box A2499 Sydney South NSW 1235 Tel: SMERF has investments and costs that are different to Virgin Super. SMERF doesn t provide insurance cover. If you d like more information about SMERF s features, contact them directly for a copy of the SMERF PDS. The Trustee of Virgin Super is also the trustee of SMERF and receives remuneration from SMERF in that capacity. Unclaimed Super Super providers are required to transfer accounts classified as unclaimed super to the ATO. If two items of written communication to you are returned to us as unclaimed mail from your last known address and no contributions have been received in the last 12 months, or you are regarded to be an inactive member (as defined by Government legislation), we ll classify you as a lost member and report this to the ATO. Where lost members who have balances of less than $2,000 ($4,000 from 31 December 2015), or where an amount has not been received in respect of them in the last 12 months and the super provider is satisfied that it will never be possible having regard to the information available to it to pay an amount to the lost members, their balances may be transferred to the ATO. 14 Virgin Super

15 Other circumstances in which super benefits must be transferred to the ATO include if you re a former temporary resident who doesn t claim their super at least 6 months after expiry of your visa or leaving Australia (as notified to the Trustee by the ATO). The Trustee is obligated to pay unclaimed super of a non-resident to the ATO. A non-resident has the right to apply to the ATO to claim their super. The Trustee has decided that it will not notify or provide an exit statement to a non-resident member whose benefit is transferred to the ATO in accordance with the relevant legislation, relying on relief granted by the Australian Securities and Investments Commission. For more information about lost members or unclaimed money go to Virgin Super 15

16 Section 2 Benefits and features of Virgin Super Choice of products You have flexibility in how you invest your funds Virgin Super Essentials: We do the hard work for you. Your funds will be invested in our LifeStage Tracker Balanced option, which automatically adjusts how your super is invested as you get older, providing you with more security as you approach retirement. Virgin Super Essentials is our default fund (so if your employer added you to Virgin Super, this is the product you ll be in). It is also an authorised MySuper product. Virgin Super Plus: Suited to those who want to get more involved and take control of their super. You can change how your super is invested as often as you like. Once you re in We want you to be informed and excited about your super. So as well as receiving great service from our Customer Care Team, we ll contact you regularly so that you can manage your super account. (Note: Unless you notify us otherwise, and if we have a valid address for you, Virgin Super will send all communications to you via ): to start with you ll receive a welcome letter and online password we ll send you regular information to show you how your super is doing we ll also update you with: periodic newsletters (including investment snapshots) quarterly Reports (to keep you updated as to the market and Virgin Super s performance) your annual statement (to keep you updated on details of your super) Virgin Super s Annual Report (this will be posted on our website but if you prefer to receive this by post just call our Customer Care Team on and we ll send it to you) Don t forget you can check your super and make changes to your investment options online at our website, virginmoney.com.au. Find it all online Check up on your super by logging into your online account at virginmoney.com.au. You can: View your Virgin Super account balance Update your personal details Switch between Virgin Super Essentials and Virgin Super Plus Switch between investment options (Virgin Super Plus only) 16 Virgin Super

17 Update your Insurance cover View your statements Manage your communications preferences Initiate benefit payments If you re not an online type of person, you can call our Customer Care Team on am 6pm AEST, weekdays. Confirmation of transactions Just so you re sure we haven t missed your request, we ll confirm the following transactions, as well as any others that are required to be confirmed by law: rollover amounts that you transfer into Virgin Super benefit payments full and partial exits Don t forget you can also check these and other transactions by logging into your online account. Flexibility when you leave employment what happens if you leave your job? Avoiding paying multiple fees and keeping things easy are among the benefits of having all your super in the one place. If you leave or change jobs, you will still remain a member of Virgin Super. If you start a new job and are able to choose to have your employer s Super Guarantee Contributions paid into your Virgin Super account, you can print and complete the Super Choice Form from our website and hand it to your HR Manager so they can start paying them into your account. Don t forget to notify us if any of your contact details change so we can keep in contact with you. Also consider the impact of leaving or changing your job on any insurance cover you may have (including the cost of cover). Refer to the Virgin Super Insurance Guide for more information about insurance. Transfers into Virgin Super from the UK In April 2015, the UK Government made changes to the tax and pension rules governing UK pension schemes. These changes meant that many Australian super funds, including Virgin Super, are no longer a UK Qualifying Recognised Overseas Pension Scheme (QROPS). If you wish to transfer your UK pension to a non-qualifying scheme (such as Virgin Super), you will be liable for additional UK tax charges on your transferred funds. It is important that before you transfer any benefits you consider all your options. You should seek independent advice before deciding to transfer your UK pension to Australia. For further information go to virginmoney.com.au While you re on maternity or paternity leave, so are your fees It s a simple change that will put an end to one of the unfair disadvantages new parents have to put up with. Virgin Super offers new mums and dads in the Virgin Super Plus option 12 months freeze on their Administration Fee. For more information and how to apply, go to virginmoney.com.au Virgin Super 17

18 Section 3 Privacy statement How we protect your privacy Virgin Super ( Fund ) is promoted by Virgin Money Financial Services Pty Ltd ABN , AFSL and issued by The Trust Company (Superannuation) Limited ABN , AFSL ( Trust ). The Fund is administered by Mercer Outsourcing (Australia) Pty Ltd ABN AFSL ( Mercer ). This privacy and security notice relates to how Virgin Money Financial Services Pty Ltd and each of its related bodies corporate, including Virgin Money (Australia) Pty Limited (ABN ) and Virgin Money Home Loans Pty Ltd (ABN ) (collectively referred to as Virgin Money ), as well as Trust and Mercer ( our, we, or us ) collect, use and disclose your personal information. We collect your personal information so that we can manage your product, send you statements and other information, let you know about features of any rewards program that may be part of your product, respond to your questions, solve your problems, verify your identity, perform administrative functions, conduct customer satisfaction research, improve our products, develop new products and so that we and our related companies and corporate partners can tell you about other products and services you may be interested in. We may also collect your personal information to comply with legislative and regulatory requirements, for example under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), Superannuation Industry (Supervision) Act 1993 (Cth), Superannuation Guarantee (Administration) Act 1992 (Cth), Insurance Contracts Act 1984 (Cth) and Corporations Act 2001 (Cth). Tax File Number (TFN) The Trustee may use your TFN in accordance with all relevant laws and legislation i.e. consolidating your accounts within Virgin Super. If you provide consent, the Trustee may also use your TFN for the purpose of locating and rolling over super balances from other funds. If you don t provide us with your personal information or otherwise authorise us to collect this information from third parties, we may not be able to provide you with one or more of our products or services. Collection We will ordinarily collect any information about you directly from you or where it is provided to us with your authority. If personal information about you is collected by third parties on any website you have accessed through our websites, we may also collect or have access to that information as part of our arrangement with those third parties. If at any time you supply us with personal information about another person, you should ensure that you are authorised to do so and you agree to inform that person of the content of this notification and consent. With your consent, we may also need to collect health information about you for insurance purposes (from you, from your doctor or from your employer). From time to time we may receive information that we have not asked for about you from third parties. We will only keep, use and disclose this information as permitted by law. 18 Virgin Super

19 Disclosure We may sometimes disclose your personal information to other organisations to deliver our products or services to you which may include marketing our own products. The types of organisations to which we may disclose this information include other financial services companies that we partner with to provide our products and services, regulatory bodies and government agencies, courts and external dispute resolution schemes, your agents, including brokers or financial advisers, our agents, contractors and professional advisers who assist us in providing our services, your referees and guarantors, your or our insurers, and organisations that carry out functions on our behalf including mailing houses, data processors, researchers, system developers or testers, accountants, auditors and lawyers. We may also disclose your personal information to third parties where you request us to or consent to us doing so or in order to provide our product and services to you and to fulfil our legal obligations. Some of the parties with which we exchange your personal information, including our partners, service providers and other third parties listed above, may be located outside Australia in countries including New Zealand, Philippines, India, Singapore, the United States of America, United Kingdom, Spain and Israel. Virgin Money, their related bodies corporate, affiliate companies and their partners and agents may use your personal information (including your telephone number and your or other electronic addresses) to keep you informed about other products, services and offers which may be of interest to you. They may do this by phone, mail, and SMS or other electronic messages. These consents operate indefinitely and shall remain in effect unless and until you notify us that you do not want to receive such direct marketing communications. If you do not wish to receive these communications please notify us online or by phone on Privacy Policies The Virgin Money, Trust and Mercer Privacy Policies set out how you can access and correct information we hold about you, how you can complain about a breach by us of your privacy rights and how your complaint will be handled. The Virgin Money Privacy Policy can be found at Trust s Privacy policy at and Mercer s Privacy Policy at If you have a complaint about a breach of your privacy, please contact: Privacy Officer, Virgin Money, Level 8, 126 Phillip Street, Sydney NSW 2000 Telephone [email protected]. Privacy Officer, The Trust Company (Superannuation) Limited Level 20, 357 Collins Street, Melbourne VIC 3000 Telephone (03) ; or Privacy Officer Mercer Outsourcing (Australia) Pty Ltd GPO Box 4650, Melbourne VIC 3001 Telephone Virgin Super 19

20 Section 4 Risks Risk and return what is it and why is it important? All investments are subject to some degree of risk. This means that you could lose some of the money in your investment. Investment returns may be volatile or investments may not meet your objectives or needs. We cannot guarantee the performance of Virgin Super or its investment options, the repayment of capital or any particular rate of return. If you leave Virgin Super, you may get back less than the amount of contributions paid into Virgin Super because of the level of investment returns earned and fees, costs and taxes. It goes without saying that you should consider all the risks that may affect your investment. In general, asset classes with a higher potential return also have a higher level of risk. This is shown in the table below. Consider the information below together with the risk/return profile and information about the potential for a negative annual return shown for each of the investment options in Section 5 of this guide. Investment risk High Growth Assets shares property Low Risk Low cash fixed interest Return Defensive Assets High 20 Virgin Super

21 The potential for negative annual returns and risk/return profile is based on the nature of the underlying investments and is shown in terms of the likelihood of negative annual returns over a specified period. The Standard Risk Measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the risks and potential losses associated with an investment strategy. Virgin Super 21

22 The general sources of risk The general sources of risk 1. Investment Risk Generally, the higher the investment risk, the higher the investment earnings over the long-term. This relationship between the level of investment risk and the potential investment earnings (or return) of the investment is sometimes called the risk-return trade off. 2. Market Risk Market Risk includes universal factors, such as economic cycles, Government policy, interest rates and inflation, which may cause increases and decreases in market valuations. 3. Currency Risk This is the risk that movements in foreign currency will affect the domestic value of overseas investments (for example, international shares). 4. Liquidity Risk Liquidity risk is the extent to which investments can be converted into cash or other liquid securities without suffering a substantial reduction in value. This risk may arise in circumstances where in order to liquidate an asset quickly, it may be necessary to sell that asset at a substantial discount and so have a negative impact on the overall performance of the Fund. Liquidity risk can change from time to time. An underlying investment may be liquid when acquired but may become illiquid at a later point in time. Where illiquidity affects underlying investments, this may result in delays in meeting benefit payment or transfer requests. 5. Security Specific Risk The value of an individual holding, interest bearing and hybrid securities may change as a result of factors such as changes in management and industry specific events. This risk can be managed by diversifying the holdings across the Fund. 6. Property Risk Property related listed securities invest in direct property related assets. Investment in property may not be as easily converted as cash and may change materially in value as a result a decrease in property values. Income from property can vary due to occupancy rates or rent levels or tenant defaults. 7. Legislation Risk There s always a risk that changes in legislation (such as super and taxation laws) may affect the accessibility, value or other conditions of your super. 8. Fund or Operational Risk This involves a risk that Virgin Super could terminate, the Trustee could be replaced or our fund managers could change. When you invest in a super fund, you also rely on the quality of the personnel and systems utilised to manage its operations (including investments). If key personnel leave or there is a significant failure in administrative systems, your investment may be materially affected. 22 Virgin Super

23 The Trustee cannot eliminate all risks associated with your super. However, it manages the impact of any investment risk by carefully adhering to considered investment policies and asset allocation approaches. The investment options also allow (to varying degrees) for diversification of underlying assets or investments. Diversification can help reduce the impact of risk and unexpected short-term movements in returns. You can help manage investment risks by taking an active role in choosing a suitable investment option for your personal circumstances and employing diversification of investments relevant to your needs. Naturally, we plan to keep Fund Risk to a minimum. The Trustee also has a risk management plan to help manage investment and other risks. The above section provides a general outline of the risks that may potentially impact your investment in Virgin Super. However, it s not an exhaustive list. You should seek your own professional advice about risks relevant to your investment, your current financial situation and retirement goals, because everyone is different. For an explanation of some of the terms used in this section refer to the Jargon Buster at the end of this guide. Virgin Super 23

24 Section 5 How we invest your money Topics covered in this section include: what you need to know about investment and performance? what are your investment options? what else do you need to know before you invest? What do I need to know about investment and performance? Our aim is simple; deliver competitive long-term performance. How do we do this? Using an investment approach that is easy to understand, proven and reliable. Investing in funds that are managed by experts. It s up to the Trustee which experts it uses. We use a straightforward investment approach called indexing An index fund manager does not try to pick winning stocks in an attempt to outperform the market like actively managed funds. Instead, they create an investment portfolio that includes all or a representative sample of the securities within a market index. So, if the market goes up or down, the value of the return of an index fund should go up or down in the same proportion. We think this is a smarter way of managing your super, because: you get competitive long-term performance without complexity. you don t have to worry about trying to guess whether one fund manager is going to perform better than another. index fund managers keep their costs lower, and that means we keep your investment fees low. indexing can be very tax efficient and is one of the most effective ways of spreading your investment risk. Check out Virgin Super s past performance at virginmoney.com.au (remember that past performance is not an indication of Virgin Super s future performance). 24 Virgin Super

25 What are your investment options? Virgin Super offers you two product offerings ( offers ) to choose from. You just pick which one you d prefer. 1. Virgin Super Essentials Leave the hard work to us and invest in our pre-mixed investment options, which automatically changes as you get older. We call this LifeStage Tracker Balanced. OR 2. Virgin Super Plus Create your own investment mix by choosing any combination from our range of investment options: a) LifeStage Tracker Balanced b) LifeStage Tracker Aggressive c) Australian Shares d) International Shares e) Listed Property f) Cash/Fixed Interest When your employer joins you up to Virgin Super, your super will be invested in our default option (Virgin Super Essentials) unless you tell us you d like to change offers. If you are signing up to Virgin Super as an individual, then you must choose which offer you d like to join (either Virgin Super Essentials or Virgin Super Plus) when you complete your application. 1. Virgin Super Essentials How does it work? As you get older, LifeStage Tracker Balanced automatically reduces your investment risk by changing your investment mix from growth assets (shares and property) to defensive assets (cash and fixed interest). Generally, younger people have a longer investment timeframe and can therefore invest more in growth assets in order to maximise returns. If young people suffer a short-term loss they often have the time to recover this later. People approaching retirement may be less tolerant to risk as they have a greater amount of retirement savings and less time to recover short term losses. So it may make sense to have a greater proportion of money invested in defensive assets. By changing your investment mix automatically, LifeStage Tracker Balanced aims to give your super greater stability as you get closer to retirement. The table below shows how assets are allocated in LifeStage Tracker Balanced (depending on your age). The asset allocations represent the investment strategy utilised to achieve the objectives of the LifeStage Tracker Balanced options. These are indicative allocations only from time to time there may be some variation depending on the experience of the underlying funds, investment market fluctuations or asset allocation decisions. Virgin Super 25

26 LifeStage Tracker Balanced Under 40 s mix 40 s mix 50 s mix 47% Australian Shares 32% International Shares 6% Listed Property 85% Growth Assets 15% Cash/Fixed Interest 70% Growth Assets 38% Australian Shares 24% International Shares 30% Cash/Fixed Interest 8% Listed Property 50% Growth Assets 25% Australian Shares 15% International Shares 50% Cash/Fixed Interest 10% Listed Property 20% Growth Assets Over 60 s mix 10% Australian Shares 5% International Shares 5% Listed Property 80% Cash/Fixed Interest More information on automatic changes to LifeStage Tracker Balanced asset allocations As you get older and move from one of our life stages to another i.e. when you turn 40, 50 or 60 years old, we ll automatically adjust your super investment mix. We do this when you reach the applicable ages (on your 40th, 50th and 60th birthdays). Remember: Your individual circumstances can change over time, so you may need to re-evaluate your investment objectives and consider whether Virgin Super Essentials is appropriate to your needs. If you re unsure about your choice of investment options or you want advice that takes into account your personal circumstances, you should seek independent financial advice from an appropriately qualified professional. When you re ready to take control, it s easy to switch to Virgin Super Plus. 26 Virgin Super

27 Investment characteristics Virgin Super Essentials Under 40 s mix 40 s mix 50 s mix Over 60 s mix Applicable to All LSTB members aged under 40s All LSTB members aged between 40 and 50 years All LSTB members aged between 50 and 60 years All LSTB members aged over 60 years Investment objective Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 3.0% over rolling 10 year periods Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 2.5% over rolling 10 year periods Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 2.0% over rolling 10 year periods Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 1.0% over rolling 10 year periods Strategic asset allocation 6% 16% 12% 3% 16% 47% International Equities (Hedged) Australian Equities International Equities (Unhedged) Australian Listed Property Australian Fixed Interest Australian Cash 24% 8% 6% 12% 12% 38% International Equities (Hedged) Australian Equities International Equities (Unhedged) Australian Listed Property Australian Fixed Interest Australian Cash 40% 10% 10% 25% 7.5% 7.5% International Equities (Hedged) Australian Equities International Equities (Unhedged) Australian Listed Property Australian Fixed Interest Australian Cash 2.5% 10% 2.5% 16% 5% 64% Australian Equities International Equities (Hedged) International Equities (Unhedged) Australian Listed Property Australian Fixed Interest Australian Cash Date of inception 5 July July July July 2005 Standard Risk Measure Profile Band 6: High Risk Band 6: High Risk Band 5: Medium to High Risk Band 3: Low to Medium Risk Probability of not achieving return objective 4 to less than 6 out of 20 years 4 to less than 6 out of 20 years 3 to less than 4 out of 20 years 1 to less than 2 out of 20 years Estimated liquidity High High High High Minimum suggested investment time period 7 years 5 years 4 years 2 years The objectives shown above are not a promise or guarantee of any particular rate of return or benefit. Instead, the objectives are used by the Trustee to monitor the performance of Virgin Super s investments. Virgin Super 27

28 2. Virgin Super Plus How does it work? This offer is aimed at people who want to take a more control of their super. How you wish to allocate your super really depends on the level of investment risk and return you re comfortable with. You can choose from the more conservative Cash/Fixed Interest asset class through to the potentially riskier and higher returning Australian or International Shares or put some of your investment into our pre-mixed Life Stage Tracker options. It s up to the Trustee to decide what fund manager(s) or investment products are used to implement the choices available under this investment option. To help you understand the asset classes (and their risk/return profile) available to you, we ve included the table below. You can change your allocation between any of our investment options below to suit your needs. Asset Class What is it? What s the Risk/Return? You choose you can tell us how you want to split investment allocation across the following assets Australian Shares International Shares Listed Property Cash/Fixed Interest Investments in Australian companies, usually listed on the Australian Stock Exchange. Investments in overseas companies. An investment in property or buildings, via property trusts. Cash deposits in a bank, short-term loan securities and other similar investments. Fixed interest is usually a loan to a Government or business where a fixed interest rate and loan length are agreed in advance. The potential return is high, but the risk is greater. Similar to Australian shares, generally the expected return is high over the long-term but the risk is greater. Moderate to high risk investment, due to reliance on economic factors, location and quality, with a corresponding level of moderate to high returns.=. Cash is lowest risk with corresponding potential for lower returns. Fixed interest is a moderate risk investment, less volatile than property and shares over the short term, but also may provide a lower level of return. You can also choose between our pre-mixed option that lets you sit back while we do the work LifeStage Tracker Balanced This is aimed at people who want Which choice you make mid to long-term growth of their really depends on the level super while maintaining risk at a of investment risk and return moderate level. you re comfortable with. For more information about risk, check out Section 4 of this guide. LifeStage Tracker Aggressive This is aimed at people who don t mind taking a bit more risk for the potential of higher returns Refer to the table below for more information. 28 Virgin Super

29 Investment characteristics Virgin Super Plus Australian Equities International Shares Listed Property Cash/Fixed Interest Applicable to All members that select a choice of investment strategy that includes an allocation to the Fund s Australian Equities Portfolio investment option All members that select a choice of investment strategy that includes an allocation to the Fund s International Equities investment option All members that select a choice of investment strategy that includes an allocation to the Fund s Australian Listed Property investment option All members that select a choice of investment strategy that includes an allocation to the Fund s Australian Cash/Fixed Interest investment option Investment objective Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 3.5% over rolling 10 year periods Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 3.0% over rolling 10 year periods Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 3.5% over rolling 10 year periods Achieve returns (after fees and taxes) that achieve movements in the Consumer Price Index (CPI) over rolling 10 year periods Strategic asset allocation 100% Australian Equities 50% 50% International Equities (Hedged) International Equities (Unhedged) 100% Australian Listed Property 20% 80% Australian Fixed Interest Australian Cash Date of inception 5 July July July July 2005 Standard Risk Measure Profile Band 6: High Risk Band 6: High Risk Band 6: High Risk Band 3: Low to Medium Risk Probability of not achieving return objective 4 to less than 6 out of 20 years 4 to less than 6 out of 20 years 4 to less than 6 out of 20 years 1 to less than 2 out of 20 years Estimated liquidity High High High High Minimum suggested investment time period 7 years 7 years 5 years 1 year Virgin Super 29

30 LifeStage Tracker - Investment Characteristics The table below shows how assets are allocated in LifeStage Tracker (depending on your age). The asset allocations represent the investment strategy utilised to achieve the objectives of the LifeStage Tracker options. These are indicative allocations only from time to time there may be some variation depending on the experience of the underlying funds, investment market fluctuations or asset allocation decisions. LifeStage Tracker 100% LifeStage Tracker - Aggressive ASSET MIX (% growth) 80% 70% 50% 20% 0% 16 yrs LifeStage Tracker - Balanced under 40 s mix over 40 s mix over 50 s mix over 60 s mix 75 yrs AGE OF MEMBER You choose a LifeStage Tracker Option Aggressive or Balanced and we ll automatically adjust the asset allocation mix according to your age. By looking at the investment characteristics on following pages, you can decide whether the Aggressive or Balanced option, or your own choice of asset allocation suits you best. What if you want to change your product offer or investment options? No problem! You can switch between Virgin Super Essentials and Virgin Super Plus any time you like (note: you can t be in both at once). In Virgin Super Plus, you can manage and control your super by changing your investment choices as often as you like. You can either do it online or by contacting our Customer Care Team on It s that easy! Product offer and investment switches that are initiated online are processed effective that day, any exceptions will be actioned by our admin team and normally take 5 business days to process and will be effective the day of processing. A business day in this definition, is a day which is not a weekend or public holiday in Melbourne. NOTE When switching investments or offers, you ll incur transaction costs (check out Section 6 of this guide for more information). 30 Virgin Super

31 Investment characteristics LifeStage Tracker Balanced Under 40 s Mix 40 s Mix 50 s Mix Over 60 s mix Applicable to All LSTB members aged under 40 All LSTB members aged between 40 and 50 years All LSTB members aged between 50 and 60 years All LSTB members aged over 60 years Investment objective Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 3.0% over rolling 10 year periods Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 2.5% over rolling 10 year periods Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 2% over rolling 10 year periods Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 1% over rolling 10 year periods Strategic asset allocation 6% 16% 12% 3% 16% 47% International Equities (Hedged) Australian Equities International Equities (Unhedged) Australian Listed Property Australian Fixed Interest Australian Cash 24% 8% 6% 12% 12% 38% International Equities (Hedged) Australian Equities International Equities (Unhedged) Australian Listed Property Australian Fixed Interest Australian Cash 40% 10% 10% 25% 7.5% 7.5% International Equities (Hedged) Australian Equities International Equities (Unhedged) Australian Listed Property Australian Fixed Interest Australian Cash 2.5% 5% 2.5% 10% 64% 16% International Equities (Hedged) Australian Equities International Equities (Unhedged) Australian Listed Property Australian Fixed Interest Australian Cash Date of inception 5 July July July July 2005 Standard Risk Measure Profile Band 6: High Risk Band 6: High Risk Band 5: Medium to High Risk Band 3: Low to Medium Risk Probability of not achieving return objective 4 to less than 6 out of 20 years 4 to less than 6 out of 20 years 3 to less than 4 out of 20 years 1 to less than 2 out of 20 years Estimated Liquidity High High High High Minimum suggested investment time period 7 years 5 years 4 years 2 years Virgin Super 31

32 Investment characteristics LifeStage Tracker Aggressive Under 40 s Mix 40 s Mix 50 s Mix Over 60 s mix Applicable to All LSTA members aged under 40 All LSTA members aged between 40 and 50 years All LSTA members aged between 50 and 60 years All LSTA members aged 60 or more Investment objective Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 3.5% over rolling 10 year periods Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 3.0% over rolling 10 year periods Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 2.5% over rolling 10 year periods Achieve returns (after fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 2% over rolling 10 year periods Strategic asset allocation 17.5% 17.5% 65% International Equities (Hedged) Australian Equities International Equities (Unhedged) 6% 12% 16% 3% 16% 47% International Equities (Hedged) Australian Equities International Equities (Unhedged) Australian Listed Property Australian Fixed Interest Australian Cash 24% 6% 8% 12% 12% 38% Australian Equities International Equities (Hedged) International Equities (Unhedged) Australian Listed Property Australian Fixed Interest Australian Cash 40% 10% 10% 25% 7.5% 7.5% Australian Equities International Equities (Hedged) International Equities (Unhedged) Australian Listed Property Australian Fixed Interest Australian Cash Date of inception 5 July July July July 2005 Standard Risk Measure Profile Band 6: High Risk Band 6: High Risk Band 6: High Risk Band 5: Medium to High Risk Probability of not achieving return objective 4 to less than 6 out of 20 years 4 to less than 6 out of 20 years 4 to less than 6 out of 20 years 3 to less than 4 out of 20 years Estimated liquidity High High High High Minimum suggested investment time period 7 years 5 years 5 years 4 years 32 Virgin Super

33 What else do you need to know before you invest? When will your money be invested? Contributions will be processed within 3 business days of receipt. What are units and unit pricing? Units are the mechanism we use to work out how much your super is worth Unit Price = the total value of assets in the investment option less relevant fees, costs and taxes the number of units issued in the investment options When you invest in Virgin Super, you don t buy actual assets instead, the Trustee allocates you units in the investment option your money goes into. Your account balance is calculated by multiplying the number of units you have by the unit price (at any particular time). Your account balance will reflect that unit prices may fluctuate from day to day. Each investment option has a different unit price, because they grow at different rates. Unit prices may fall as well as rise. There is a difference between the unit price we use when you put money into an investment option and the one we use when you take money out, which is the way we allow for the transaction costs of buying and selling investments. Check out Section 6 of this guide. Unit prices are calculated daily, based on the latest available market price at the end of each business day. The unit price is normally calculated the next business day. If the unit price can t be calculated because of an unforeseeable event (e.g. illiquidity of an underlying investment) or the Trustee determines that is necessary or appropriate (for the interests of members) to delay or suspend calculation of the unit price, the unit price will be calculated as soon as reasonably possible. Virgin Super and the Trustee won t be liable to you for any loss or expense suffered or incurred by you if it s not possible to calculate a unit price or there is a delay with this. The Trustee reserves the right to take whatever action it considers appropriate for the ongoing management of the underlying investments, member account and the processing of applications, investment switches and redemptions, in response to market developments or investment conditions. Does the Trustee invest in derivatives? Derivatives are securities that derive their value from other security types, e.g. futures and options. The Trustee will not invest directly in derivatives, although the investment manager of the underlying funds may do so. Are environmental, social or ethical considerations taken into account? The Trustee doesn t take environmental, social or ethical considerations or labour standards into consideration when it s selecting, retaining or redeeming Virgin Super s investments or in choosing underlying fund managers. The underlying managers may take such considerations or standards into account, but they do so in their own right and not on the Trustee s behalf. What if the Trustee makes changes to the investment options? We can decide to add or close investment options from time to time. We ll let you know if this happens. The Trustee can also decide to change the underlying fund manager or investment products used in the investment options. This may occur without prior notification to you. For an explanation of some of the terms used in this section refer to the Jargon Buster at the end of this guide. Virgin Super 33

34 Section 6 Fees and costs This section shows fees and other costs that you may be charged. These fees and other costs may be deducted from your money, from the returns on your investment or from Virgin Super s assets as a whole. Other fees, such as activity fees, advice fees for personal advice and insurance fees, may also be charged, but these will depend on the nature of the activity, advice or insurance chosen by you. Taxes, insurance fees and other costs relating to insurance are set out in another part of this document. You should read all the information about fees and costs, because it is important to understand their impact on your investment. Virgin Super Essentials (MySuper) and Virgin Super Plus have different fees: Virgin Super Essentials Type of fee Amount How and when paid Investment fee 1 Administration fee 1 Buy-sell spread 3 Switching fee Exit fee Advice fees Other fees and costs Indirect cost ratio 2 0.3% of your account balance per annum $78, plus 0.5% of your account balance per annum Between 0% to 0.25% (see note 3 below) Nil Nil N/A See note 1 below 0.15% of your account balance per annum Deducted in arrears from your investment balance on a monthly basis Deducted in arrears from your investment balance on a monthly basis Deducted quarterly from the assets of the fund and reflected in the unit price Virgin Super Plus Type of fee Amount How and when paid Investment fee 1 Administration fee 1 Buy-sell spread 3 Switching fee Exit fee Advice fees Other fees and costs Indirect cost ratio 2 0.3% of your account balance per annum $78, plus a % of your account balance per annum as shown below: Account Balance $0 $25, % p.a. $25, $250, % p.a. $250, % p.a. Between 0% to 0.25% (see note 3 below) Nil Nil N/A See note 1 below 0.15% of your account balance per annum Deducted in arrears from your investment balance on a monthly basis Deducted in arrears from your investment balance on a monthly basis Deducted quarterly from the assets of the fund and reflected in the unit price 1 Other fees and costs such as activity fees and insurance fees may apply. Refer to Additional Explanation of Fees and Costs below for more information. 2 The indirect cost ratio is an estimate based on Financial Year. 3 Buy-sell spreads and other transactions costs are retained by the investment option and are not paid to Virgin Money or the Trustee. 34 Virgin Super

35 Additional explanation of fees and costs Investment Fee The Investment Fee covers the ongoing cost associated with managing your investments. It is a percentage based Fee that applies per investment option, based on the value of your investments. Currently, the Investment Fee is the same across all Virgin Super Investment Options, at 0.30% per annum. The Investment Fee is charged to your account monthly in arrears and when you exit the fund. Administration Fee The Administration Fee is designed to cover the cost that we incur in managing the Fund and managing your account. The Administration Fee consists of two components: 1. A fixed dollar member fee of $1.50 per week, which is charged to your account monthly in arrears. 2. A percentage based fee, applied against the value of your investments, which we also charge to your account monthly in arrears. Different percentage based administration fee structures apply to Virgin Super Essentials and Virgin Super Plus, as summarised in the table below. Fixed Dollar Member Fee Asset Based Administration Fees Virgin Super Essentials $78 per annum ($1.50 per week) 0.50% p.a. irrespective of account balance Virgin Super Plus $78 per annum ($1.50 per week) $0 $25, % p.a. $25,001 $250, % p.a. $250, % p.a. Indirect Costs To fund reserves or other unexpected costs, the Fund makes provisions in the unit price. This results in indirect costs to members. See page 38 for more information on fund reserves. The investment returns allocated to accounts is net of all indirect costs. The Indirect Cost Ratio is the ratio of the product s indirect costs compared to the total average net assets of the Fund. Virgin Super 35

36 Example of annual fees and costs for Virgin Super Plus This table gives an example of how the fees and costs for Virgin Super Plus can affect your superannuation investment over a 1 year period. You should use this table to compare Virgin Super Plus with other superannuation products. FEE EXAMPLE: Virgin Super Plus Balance of $50,000 Investment fees 0.3% For every $50,000 you have in Virgin Super Plus you will be charged $150 each year PLUS Administration fees PLUS Indirect costs for Virgin Super Plus $78 ($1.50 per week) plus 0.7% on the first $25,000 plus 0.5% on the remaining $25,000 And, you will be charged $78 in administration fees regardless of your balance plus, for every $50,000 you have in Virgin Super Plus, you will be charged $300 each year 0.15% And, indirect costs of $75 each year will be deducted from your investment EQUALS Cost of Virgin Super Plus If your balance was $50,000, then for that year you will be charged fees of $603 for Virgin Super Plus Note: Additional fees may apply For the fee example that relates to Virgin Super Essentials, see Section 6 of the PDS. Below we ve illustrated the total administration, investment and indirect costs that will apply to your Super account per annum, across our two product offerings and for different account balances. Essentials Plus $5,000 $ $ $10,000 $ $ $25,000 $ $ $50,000 $ $ $100,000 $1, $1, $250,000 $2, $2, $500,000 $4, $4, Transaction costs (buy/sell spreads) When we buy or sell investments, the investment manager of the underlying funds has to pay costs such as brokerage and taxes. Transaction costs on buying and selling assets are taken into account when calculating unit prices and are therefore an additional cost to you. These costs vary depending on the investment activity at a fund level, so we can t give you a precise figure. We estimate these costs to be between 0% to 0.25% per investment option. Adviser Fees Adviser Fees refer to extra fees that are sometimes paid to financial advisers (if you have one) for advice about your Super. Virgin Super does not currently provide for payment of fees or commissions to advisers from your Super balance. 36 Virgin Super

37 Insurance Fee If you have insurance cover, an Insurance Fee will be deducted monthly in arrears from your account. You won t pay any commissions on your Insurance Fee. For more info, refer to Insurance in your super in Section 8 of the PDS and check out the Virgin Super Insurance guide. Activity Fees Family Law Related Fees If your marriage or de facto relationship (including same-sex relationship) breaks down, money in your Super account may be able to be divided between couples under family law and other relevant legislation (depending on which State or Territory you are in). With family law related transactions, the following fees apply: $110 for each operative date information is requested and $88 per benefit split whereby you transfer monies out of your account. Generally, Family Law fees are shared by both parties involved in the Financial Settlement, though different arrangements can be agreed. You ll need to provide us details regarding how fees are to be allocated between you and your former partner at the time that you make a Family Law related request. Overseas Transfer Fee When transferring amounts to/from an eligible overseas pension fund from/to Virgin Super, a fee of $275 per pension transfer applies. This fee is deducted from your account balance at the time we process your request. Fund Reserves Sometimes unusual expenses arise in relation to Virgin Super and the Trustee is entitled to recover these expenses from the assets of the Fund. To cater for this, the Trustee established an expense reserve which is used to meet operational expenses and to fund other strategic projects, when the Trustee thinks it s appropriate. This is done by making provisions in the unit price and allocating amounts to the expense reserve at a rate of approximately 0.15% of the Fund s assets per annum. Money in the expense reserve is put to good use in accordance with the Trustee s expense reserve policy. We report movements in the expense reserve in Virgin Super s Annual Report each year. To comply with Super Regulations, the Trustee is also required to set aside an Operational Risk Financial Requirement ( ORFR) as a contingency to protect the Fund for losses that might arise from operational risk events. The Trustee has determined to set aside a target amount of 0.28% of the Fund s assets as a contingency against operational risk losses. The Trustee will allocate monies from the Fund s Expense Reserve to the ORFR to maintain the target level. The Trustee will also periodically review the operational risk reserve target amount and may adjust this over time, based on the Fund s operational risk experiences. The Trustee may also set up other Fund reserves from time to time, in accordance with Super Regulations and the Trust Deed. Tax All Virgin Super s fees are inclusive of GST (net of Reduced Input Tax Credits (RITC)) and stamp duty. The Fund receives a tax benefit from the expenses it incurs. Virgin Super will pass on that benefit to you as a tax rebate, based on the amount of fees you have paid. The tax rebate is paid to you monthly and is calculated at a rate of 15% multiplied by the Investment Fee and the Administration Fee paid by you in that month. For general info about tax, check out Section 7 of the PDS and Tax stuff in Section 7 of this guide. Virgin Super 37

38 Defined fees Activity fees A fee is an activity fee if: a. the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee: i. that is engaged in at the request, or with the consent, of a member; or ii. that relates to a member and is required by law; and b. those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee. Administration fees An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs incurred by the trustee of the superannuation entity that: a. relate to the administration or operation of the entity; and b. are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. Advice fees A fee is an advice fee if: a. the fee relates directly to costs incurred by the trustee of the superannuation entity because of the provision of financial product advice to a member by: i. a trustee of the entity; or ii. another person acting as an employee of, or under an arrangement with, the trustee of the entity; and b. those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee. Buy-sell spreads A buy-sell spread is a fee to recover transaction costs incurred by the trustee of the superannuation entity in relation to the sale and purchase of assets of the entity. Exit fees An exit fee is a fee to recover the costs of disposing of all or part of members interests in the superannuation entity. Indirect costs The indirect costs of a MySuper product or an investment option offered by a superannuation entity means any amount that: a. a trustee of the entity knows, or reasonably ought to know, will directly or indirectly reduce the return on the investment of a member of the entity in the MySuper product or investment option; and b. is not charged to the member as a fee. 38 Virgin Super

39 Indirect cost ratio The indirect cost ratio (ICR), for a MySuper product or an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation entity attributed to the MySuper product or investment option. Note: A dollar-based fee deducted directly from a member s account is not included in the indirect cost ratio. Insurance fees A fee is an insurance fee if: a. the fee relates directly to either or both of the following: i. insurance premiums paid by the trustee, or the trustees, of a superannuation entity in relation to a member or members of the entity; ii. costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the provision of insurance for a member or members of the entity; and b. the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and c. the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an advice fee. Investment fees An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes: a. fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and b. costs incurred by the trustee of the entity that: i. relate to the investment of assets of the entity; and ii. are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. Switching fees A switching fee is a fee to recover the costs of switching all or part of a member s interest in the superannuation entity from one class of beneficial interest in the entity to another. Virgin Super 39

40 Section 7 Tax stuff Topics covered in this section include: how is your super taxed? do you have to provide your Tax File Number (TFN)? This information is a general summary only of the significant tax implications relating to super and is based on taxation laws as at the date of preparation of this guide, as applicable to Virgin Super. Tax rules can change from time to time. The Government imposed a temporary Budget Repair levy of 2% effective 1 July 2014 which will apply to the , and financial years. The rates below do not include consideration for the Temporary Budget Repair Levy. For up-to-date or more information go to The tax you pay will depend on your personal circumstances. Contact a qualified taxation adviser for personal tax advice. How is your super taxed? Basically there are four types of tax you may need to know about. 1. Tax on contributions or other amounts received by Virgin Super Tax is payable by Virgin Super on concessional contributions (pre-tax). Members may also be subject to additional tax (directly) if contributions exceed limits on concessional and/or non-concessional (after tax) contributions. Concessional contributions are super contributions made from pre-tax income for which a tax deduction can be claimed. They are also referred to as deductible contributions. Concessional contributions include employer Super Guarantee Contributions, additional employer contributions, salary sacrifice contributions and contributions made by the self-employed for which they claim a tax deduction. Non-concessional contributions include member contributions made from a person s after-tax income. The terms non-concessional contributions, post-tax contributions and after tax contributions are often used interchangeably. A concessional tax rate of 15% will ordinarily apply to concessional contributions up to a cap of $30,000 per person per year for the 2015/2016 financial year (subject to indexation in future years), or (for the 2015/2016 and later financial years) $35,000 if aged at least 50 years at any time in the relevant financial year. Note: The Government has imposed an additional 15% personal tax on top of the concessional rate of tax for high income individuals with personal earnings and non-excessive concessional contributions over $300,000. For further information about this change, go to A member who goes over the cap on concessional contributions is subject to personal tax on the excess at their marginal rate plus interest and can have up to 85% of the excess contributions withdrawn and refunded by the Australian Tax Office (ATO) net of any tax liabilities you have (including that tax and the interest charge). Any excess concessional contributions will, unless refunded, also count towards the amount of a member s non-concessional contributions (see below). 40 Virgin Super

41 If you have excess concessional contributions go to for more information or speak to a tax adviser. If we don t have your TFN at the end of a financial year (or when you leave the Fund), your concessional contributions in the year may be taxed an extra 32% due to the Medicare levy increasing from 1.5% to 2% (referred to as No TFN Tax ). Any amount of No TFN Tax will be deducted at the end of financial year or on leaving the fund for payment to the ATO. Non-concessional contributions are capped at $180,000 per person per annum (for 2015/2016 financial year). People aged under 65 in a financial year can bring forward two years of future entitlements averaged over a three year period, giving them a cap of $540,000 over a three year period. The $180,000 cap may be indexed in future years so it s always six times the cap on concessional contributions. Non-concessional contributions in excess of these limits will incur tax at the rate of 47% payable directly by the individual person (this amount must be released from a super fund upon presentation of a release authority issued by the ATO). Note: Spouse contributions will be included in the receiving spouse s non-concessional contributions cap. Government co-contributions, personal contributions made from certain proceeds from the disposal of qualifying small business assets up to a lifetime limit (refer to for the applicable limit) and personal contributions from the proceeds of certain payments for personal injury resulting in permanent disablement made within 90 days of receiving the payment won t count towards the non-concessional contributions cap (subject to various conditions). There are also special tax rules applicable to the receipt of amounts transferred from overseas funds. Go to for more information. Note: In circumstances where you exceed a contribution cap due to special circumstances, you may be able to apply to the Tax Commissioner for a determination that some or all of a contribution be either disregarded or reallocated to another year. 2. Tax on money paid to you when you leave Virgin Super If your super is taken in the form of a lump sum benefit payment, tax may be payable dependent on your age and the makeup of your super payment components. If tax is payable, the Trustee is required to withhold the tax amount from your payment and provide you with a payment summary for your tax return. Tax won t apply to super benefits if paid from a taxed source to a member aged 60 or over (whether paid as a lump sum or pension). Tax will be payable on the taxable component of super benefits paid to members aged under 60. Lump sum payments from a taxed source will consist of only two components: 1. a tax-free component made up of non-concessional contributions, as well as other concessionally treated components such as the pre 1 July 1983 component, undeducted contributions, Capital Gains Tax (CGT) exempt component, post June 1994 invalidity component and concessional component (crystallised as a dollar amount as at 30 June 2007) which may form part of a rollover or transfer that you make to Virgin Super; and 2. a taxable component made up of the total super benefit, less any tax-free component. Assuming we have a person s TFN, the taxable component will be taxed at 20% (plus Medicare levy) if paid to a person under their preservation age, or 15% (plus Medicare levy) on any amount over an indexed lifetime limit of $185,000 (for the 2015/2016 year) if paid to a person from preservation age to age 59 (amounts under the $185,000 limit will be tax free). Tax at the top marginal tax rate (plus Medicare levy) will be withheld if we don t hold your TFN. Virgin Super 41

42 Any payment of super benefits must be withdrawn from the tax-free and taxable components in proportion. Payments from a taxed source to temporary residents departing Australia are treated differently (the taxable component will generally be taxed at 35%). 3. Tax on Investment Earnings Any earnings you receive into your account from super investments are taxed at a maximum concessional rate of 15%, which is generally lower than other forms of savings. The effective tax rate may be less after deductions or other credits are taken into account. 4. Tax on Death, Terminal Illness or Disablement All lump sum death benefit payments made to a death benefits dependant will be tax-free. Death Benefit Payments to non-death benefits dependants will have to be made as a lump sum. The taxable component of lump sum payments to non-death benefits dependants (irrespective of their age) will usually be taxed at up to 15% (plus Medicare levy). Lump sum death benefits may include an untaxed amount if they include insured amounts for which a tax deduction has been claimed (untaxed elements attract higher tax). Where a Death Benefit is received by the legal personal representative of a deceased estate, tax needs to be determined by the legal personal representative according to who is intended to benefit from the estate. A Terminal Illness benefit (which meets the requirements of the tax legislation) will be tax-free. A Total and Permanent Disablement (TPD) benefit paid to a member is generally taxed as a lump sum super benefit (see tax rates for lump sum payments above), but with the tax free component often increased for an invalidity component. For Income Protection, payments received by a member will be taxed at his/her marginal tax rate. A death benefits dependant of yours on your death (for taxation purposes) is: Your spouse (including a person with whom you are in a relationship registered under State or Territory law or a person who lives with you on a genuine domestic basis as a couple (e.g. de facto partner)) or former spouse; Your child or children (including your adopted child, step child or ex-nuptial child, a child of your spouse or someone recognised as your child under Family Law legislation) aged less than 18; A person who is in an interdependency relationship with you just before your death; or A person who is financially dependent on you just before your death. Tax File Number (TFN) Under the Superannuation Industry (Supervision) Act 1993 (SIS), Virgin Super is authorised to collect your TFN, which will only be used for lawful purposes. You don t have to provide your TFN, however giving your TFN to Virgin Super will have the following advantages (which may not otherwise apply): Virgin Super will be able to accept and allocate all types of contributions to your account; you may not have to pay additional tax on your contributions; other than the tax that may ordinarily apply, no additional tax will be deducted when you start drawing down your super benefits; and Virgin Super can use your TFN to locate and rollover your lost super accounts (if you have provided permission), so that you receive all your super benefits when you retire. 42 Virgin Super

43 These purposes may change in the future as a result of legislative change. The Trustee of Virgin Super may disclose your TFN to another super provider, when your benefits are being transferred, unless you request in writing to the Trustee for this not to happen. Employers are also often obliged to provide the TFN for an employee to the super fund to which the employer contributes for the employee. This may not always occur. If we don t have your TFN at the end of a financial year or when you leave the Fund, increased tax (no TFN Tax) may be deducted from your concessional contributions (see page 40 for more information). Virgin Super has a Policy relating to the management of No TFN Tax including its recovery from the ATO if a TFN is subsequently provided to the Fund. If you would like more information, please contact our Customer Care Team on Go to for more information about tax related to super. If you have any questions about this, please contact our Customer Care Team for general information or a qualified professional to discuss your personal circumstances. Section 8 Other information Cooling off period New individual applicants If you made the choice to join Virgin Super, you re entitled to a cooling-off period to make sure you re completely happy with your decision to join us. This means that you can cancel your initial application for membership of Virgin Super within 14 days of the earlier of: the date you receive confirmation of your membership from us; the end of the fifth day after we first issue you with units as part of your investment in Virgin Super. If you cancel within the cooling-off period, the amount we ll pay you will be adjusted for any changes in the unit price of the investment funds, less any applicable tax and reasonable administrative and transaction costs. If you want to cancel within the cooling-off period, you should notify us in writing. You ll also need to provide us with the details of another complying super fund, approved deposit fund or retirement savings account for preserved or restricted non-preserved benefits. Please note, if you exercise any right or power that you have in relation to your Virgin Super membership during the cooling-off period (for example, you make an insurance claim), you can t cancel your initial application. Cooling off does not apply to you if your employer signed you up. Also, the cooling off period doesn t apply to any investment switches or additional investments. Virgin Super 43

44 New Employers Employers deciding to participate in Virgin Super for the first time (as employer sponsors who agree to contribute to Virgin Super for their employees) have a period of 14 days during which they can cancel their decision and redeem the interest created in Virgin Super on behalf of employees. If an employer wishes to exercise its cooling off right, it must do so within this period by contacting our Customer Care Team in writing. If an employer exercises its cooling-off rights, the amount redeemed may be less than the amount paid into Virgin Super. The participating employer must nominate another complying super fund or retirement savings account to which investments will be transferred. The amount redeemed is based on the applicable unit price on the date that the request for cancellation is received, less any applicable tax and reasonable administrative and transaction costs. Having a say about what happens to your super when you die? You have a number of options: Option 1 Binding nomination Option 2 Preferred (non-binding) Dependant nomination Option 3 No nomination However, you should note that the Trustee must still ensure that your death benefit is paid to either your dependants or your legal personal representative (i.e. your estate). Here s some information on each of the options available: Option 1 Binding nomination What is a binding nomination? By using a binding nomination, you ve got the power to determine who should receive your death benefit. This should give you more control, but it s only effective if your nomination is made properly. If your nomination is valid, the Trustee must pay your death benefit in accordance with your nomination. If your nomination isn t valid, your death benefit will be paid as per Option 3. If your nomination is valid but expires or lapses (after 3 years) without being confirmed or another binding nomination being made, it will be treated as a Preferred (non-binding) nomination. How do I create a binding nomination? In order to be valid and binding, your nomination must be signed by you in front of two witnesses aged over 18 years who aren t named as your beneficiaries and the nomination must be delivered to us. You can only nominate your dependants or your estate to receive your death benefit. The eligibility of the persons nominated by you is determined at the date of your death. The Trustee must be satisfied the persons you have nominated are your dependants or your estate. A binding nomination can be made in favour of a same-sex spouse or child of a same sex partner who qualifies as a dependant under super legislation. If a person nominated by you dies or is not a dependant of your estate at the time of your death, that person s portion of your death benefit will be distributed equally amongst your surviving dependants/ estate. If there isn t any surviving dependants/estate, your death benefit will be paid as per Option 3. What will cause a change? A valid nomination is effective for 3 years after the day it was first signed or last confirmed or amended by you. If you wish to confirm your nomination (to avoid it becoming ineffective after 3 years), simply send us a signed and dated written confirmation. Similarly, if you wish to amend or revoke your nomination, send us written confirmation. Your notice of amendment or revocation must be witnessed in the same manner as your original nomination (two witnesses aged over 18 years who aren t named as your beneficiaries). 44 Virgin Super

45 Option 2 Preferred (non-binding) Dependant nomination By selecting this option, the Trustee will consider your preferred nomination, however the Trustee has the discretion to pay your death benefit (in proportions it determines) to any one or more of your dependants or your estate. Option 3 No nomination If you don t make a nomination or you make an invalid binding nomination, your benefit will be paid to one or more of your dependants and/or your estate. This is at the Trustee s discretion. Who is a Dependant? A Dependant means: your spouse including a spouse (of the same or opposite sex) from a relationship recognised under State or Territory law or a person who lives with you on a genuine domestic basis as a couple (e.g. de facto partner); your child or a child of your spouse (including an adopted child, a step child, ex-nuptial child or someone recognised as a child under Family Law legislation, of any age); any person who is financially dependent on you; and any person with whom you have an interdependency relationship (generally a close personal relationship between two people who live together, where one or both provides the other with financial support, domestic support and personal care). There is also an interdependent relationship where there is a close personal relationship between you and another person, and either or both of you suffer from a physical, intellectual or psychiatric disability. This means the requirements relating to co-habitation or provision of financial or domestic support are not required to be proven. Complaints We absolutely, positively cannot bear the thought of any of our members not being completely happy with what we do. So if you do have any complaints, you can be sure they ll be dealt with as fast as possible. If you feel you need to make a complaint, please contact our Customer Care Team: Virgin Super Resolutions Manager GPO Box 4650 Melbourne VIC 3001 Tel: After investigating your complaint and, if required, referring the matter to the Trustee, our Resolutions Manager will write to you advising you of the result. This should only take a couple of weeks, but depending on the issue, it may take up to 90 days. If you re not satisfied with how we handle your complaint or you don t receive a response in 90 days, then you have the option to contact the Superannuation Complaints Tribunal (SCT). The SCT is an independent body set up by the Commonwealth Government to assist in the resolution of complaints. The SCT can be contacted at: Superannuation Complaints Tribunal Locked Bag 3060 GPO MELBOURNE VIC 3001 Tel: (cost of a local call) More information about the SCT is available at sct.gov.au Virgin Super 45

46 Section 9 Jargon buster We ve developed a Jargon Buster to help you understand those nasty technical investment or insurance terms a little better. For more information about insurance terms, refer to the Fund s policy. For an explanation of any other terms used in this guide, contact our Customer Care Team on Asset allocation the mix of assets, such as shares or bonds utilised by an investment option. Asset class a type of asset that has special features, predominately its potential return and volatility. The main asset classes are shares, property, cash and bonds. Contractors are persons who are on a fixed term contract of 12 months or more. Derivatives securities that derive their value from another security, e.g. futures and options. Employee Members members of the Employer Sponsored Division. Employer Sponsored Division is the division of Virgin Super for employees who have been nominated for membership by their employer. Full-time work means a person is performing all the normal duties of his/her occupation and is working at least 30 hours a week on a full-time basis. Fund manager an organisation that specialises in the investment of a portfolio of assets on behalf of an individual or organisation (also commonly referred to as an investment manager ). The Trustee may decide to change Virgin Super s underlying fund manager(s) at any time. Index measures the performance or change in value of a particular group of assets, such as bonds, cash and shares. Today, there are indexes measuring the investment results of all the major asset classes. Index manager a fund manager who tries to match, or replicate, the performance of the investment markets e.g. if the Australian share market returns 10 per cent, an index manager should have earned 10 per cent. Manager of the underlying fund an organisation that specialises in the investment of a portfolio of assets on behalf of an individual or organisation (also commonly referred to as an investment manager ). The fund manager helps implement the investment options available from Virgin Super including the underlying fund managers used from time to time. The Trustee or Fund manager may decide to change Virgin Super s underlying fund manager(s) at any time. MySuper is part of the Government s packages of reforms, and is aimed at making super easier and more transparent for people to compare default super products. Super funds will need to offer a cost effective product for members who haven t made a choice. Virgin Super Essentials is Virgin Super s MySuper offer. 46 Virgin Super

47 Non-preserved amounts amounts held in superannuation since 1999 that can be accessed without meeting a condition of release, such as permanent retirement after age 60, or reaching 65 years of age. Personal Division is the division of Virgin Super for individuals (Individual Applicants) who apply to participate in Virgin Super Portfolio a range of investments across a group of asset classes, managed together as a portfolio to achieve a single performance objective. Securities a certificate of ownership in an investment that can be transferred from one person to another. Examples include notes, bonds, stocks or shares, futures, contracts or options. Stamp Duty this is a charge levied by each State Government. The amount you pay varies depending on your state of residence and may change from time to time. Virgin Super 47

48 Customer Care Phone am and 6pm AEST/AEDT Monday to Friday (apart from public holidays) Postal Address Virgin Super GPO Box 4650 Melbourne VIC 3001 Website virginmoney.com.au 48 Virgin Super